Gold should face headwinds in the near-term future, but a few years out, over-tightening by the Fed could send the economy into a recession and push gold prices up substantially, this according to Erik Norland, Executive Director and Senior Economist of CME Group.

'We have a vast expansion in deficits in the United States, and if the Fed over-tightens and were to put the economy into a recession and then have to cut rates back, we could see a tremendous, tremendous bull rally in gold,' Norland told Kitco News.

Norland noted that this scenario may not materialize for a while.

œAt the moment, that™s not in the cards for the next few months, Norland said.

Gold has a very strong negative correlation with the dollar, and investors should be trading gold like a currency, he said.

œI think that you really have to look at gold here as a currency that™s trending with the euro, the pound, the renminbi, and other currencies versus the U.S. dollar, Norland said.

China Stocks Lower At Close Of Trade; Shanghai Composite Down 1.05%

Wednesday, 19 December 2018 14:52 WIB
China stocks were lower after the close on Wednesday, as losses in the Oil Equipment Services & Distribution, Software & Computer Services and Technology sectors led shares lower.
At the close in Shanghai, the Shanghai Composite lost 1.05%...